Government of Jharkhand...51 Urban Local Bodies (ULBs), Jharkhand. Request for Proposal...

Showcasing Jharkhand Through

Planned and Sustained Urban Development

Government of Jharkhand

URBAN DEVELOPMENT AND HOUSING DEPARTMENT

STATE URBAN DEVELOPMENT AGENCY

RFP No:07/N. V/Reform (Audit)01-2015- 10 Date: 13/10/2020

Selection of CAG Empaneled Chartered Accountant Firms

for

Audit of Books & Accounts in 51 Urban Local Bodies (ULBs), Jharkhand.

Request for Proposal

Sale/Download of RFP document : 15/10/2020 from 10:00 HRS

Submission of Pre-bid queries : 26/10/2020 till 14:00 HRS

Submission of Proposal/Document: 09/11/2020 till 16:00 HRS

Opening of Proposals : 09/11/2020 by 17:00 HRS

CONTENTS

DISCLAIMER .......................................................................................................................... 1

Data Sheet .............................................................................................................................. 2

Instruction to Bidders ................................................................................................................. 9

1. MINIMUM ELIGIBILITY CRITERIA .................................................................................... 9

1.1 Technical capabilities: ..................................................................................................... 9

1.2 Financial capacity .......................................................................................................... 9

2. LANGUAGE OF THE PROPOSAL : ................................................................................... 9

3. SIGNING OF THE PROPOSAL : ....................................................................................... 9

4. COST OF PROPOSAL : ................................................................................................ 10

5. DEPARTMENT’S RIGHT TO ACCEPT ANY PROPOSAL AND TO REJECT ANY OR ALL PROPOSALS : ... 10

6. PERFORMANCE GUARANTEE : .................................................................................... 10

7. SIGNING OF AGREEMENT : ......................................................................................... 11

8. TIME SCHEDULE OF CONSULTANCY: ........................................................................... 11

9. GENERAL OUTPUTS AND TIMELINE EXPECTED FROM C.A FIRM : .... Error! Bookmark not defined.

10. SUBMISSION OF REPORT: .......................................................................................... 11

11. INFORMATION FOR C.A FIRM FOR SUBMITTING THE PROPOSAL: ................................... 11

11.1 TECHNICAL PROPOSAL .............................................................................................. 11

11.2 FINANCIAL PROPOSAL: ............................................................................................... 13

12. EVALUATION OF THE PROPOSAL (QCBS): .................................................................... 15

12.1 Technical Evaluation:- ................................................................................................... 15

12.2 PUBLIC OPENING AND EVALUATION OF FINANCIAL BID ................................................ 17

13. THE MANDATORY KEY POSITIONS FOR THE ASSIGNMENT: ........................................... 18

14. PRE-PROPOSAL/PROPOSAL CONFERENCE .................................................................. 19

15. CLARIFICATIONS: ....................................................................................................... 19

16. AMENDMENT OF RFP: ................................................................................................ 20

17. MODIFICATION/SUBSTITUTION/WITHDRAWAL OF PROPOSALS ...................................... 20

18. SUBSTITUTION OF KEY PERSONNEL ........................................................................... 20

19. PAYMENT SHALL BE MADE AS DETAILED BELOW : ........................................................ 21

20. INCOME TAX: ............................................................................................................. 21

21. GOODS &SERVICE TAX (GST): ..................................................................................... 21

22. PRICE: ...................................................................................................................... 21

23. INSURANCE: .............................................................................................................. 21

24. NUMBER OF PROPOSALS ........................................................................................... 21

25. SUBMISSION, OPENING AND EVALUATION OF PROPOSAL ............................................. 22

26. TOR WILL FORM PART OF AGREEMENT: ...................................................................... 22

27. ADDRESS: ................................................................................................................. 22

28. LIST OF DOCUMENT ATTACHED WITH TECHNICAL BID: ................................................. 23

29. FORCE MAJEURE CLAUSE: ......................................................................................... 23

30. LEGAL MATTERS ....................................................................................................... 23

31. DURATION OF THE ASSIGNMENT ................................................................................ 23

32. OTHER TERMS AND CONDITIONS ................................................................................ 23

TERMS OF REFERENCE (TOR) FOR C.A. FIRMS ....................................................................... 26

1. INTRODUCTION : ...................................................... Error! Bookmark not defined.26

2. OBJECTIVE OF ULBs AUDIT: ........................................................................................ 27

3. SCOPE OF SERVICES ................................................................................................. 27

4. AUDIT REPORT : ........................................................................................................ 29

4.1 The report of Auditor shall state: ...................................................................................... 29

4.2 ANNEXURE TO THE AUDITOR REPORT OF THE MUNICIPAL: ........................................... 29

4.3 PERIODICAL AUDIT REPORT / CERTIFICATE ................................................................. 31

5. DELIVERABLES / OUTPUT ........................................................................................... 32

6. DELAYS IN THE PERFORMANCE .................................................................................. 33

7. LIQUIDATED DAMAGES ............................................................................................... 33

8. ACKNOWLEDGEMENTS BY APPLICANT FIRM ................................................................ 34

9. NO CLAIM ARRANGEMENTS ........................................................................................ 34

10. QUALITY STANDARDS ................................................................................................ 34

11. CORRUPT PRACTICES ................................................................................................ 34

12. DETAILS TO BE KEPT CONFIDENTIAL ........................................................................... 35

13. TRANSFER OF RIGHTS ............................................................................................... 35

14. DECISIONS AND INTERPRETATION .............................................................................. 35

15. SUSPENSION ............................................................................................................. 36

16. DISQUALIFICATION .................................................................................................... 36

17. TERMINATION OF THE CONTRACT............................................................................... 36

18. CESSATION OF RIGHTS AND OBLIGATIONS .................................................................. 37

19. CESSATION OF SERVICES UPON TERMINATION ........................................................... 37

20. DISPUTE RESOLUTION ............................................................................................... 37

21. Form for Technical Bid .................................................................................................. 41

Form T – 1 ............................................................................................................................ 41

Form T – 2 ............................................................................................................................ 42

Form T – 3 ............................................................................................................................ 43

Form T – 4 ............................................................................................................................ 44

Form T – 5 ............................................................................................................................ 45

Form T- 6 ............................................................................................................................. 47

Form T – 7 ............................................................................................................................ 48

Form T – 8 ............................................................................................................................ 49

22. Form for Financial Bid ................................................................................................... 50

FORM FIN-1 .......................................................................................................................... 50

FORM FIN-2 .......................................................................................................................... 51

Form F – 1 ............................................................................................................................ 52

Form F–2 .............................................................................................................................. 53

FORM- 3 .............................................................................................................................. 54

Urban Development & Housing Department | 2020 1


URBAN DEVELOPMENT AND HOUSING DEPARTMENT STATE URBAN DEVELOPMENT AGENCY

DISCLAIMER

1. Though adequate care has been taken while issuing this RFP, the Applicant

C.A Firm should satisfy himself that the document is complete in all respects.

Intimation of any discrepancy shall be given to this office (as mentioned below)

immediately. If no intimation is received by this office within 3 days from the

date of issue of the RFP, then this office shall consider that the document

received by the Applicant Firm is complete in all respects and that the Applicant

Firm is satisfied that the RFP is complete in all respect.

2. Urban Development and Housing Department reserves the right to change any

or all of the provisions of this RFP before date of submission. Such changes

would be intimated to all parties procuring this RFP before date of submission.

3. Urban Development and Housing Department reserves the right to reject any

or the entire Proposal without assigning any reasons whatsoever. No

correspondence will be entertained on this account.

Sd/-

Director

State Urban Development Agency,

Urban Development and Housing Department,

Jharkhand




STATE URBANDEVELOPMENT AGENCY

RFP No.: 07/N.V/Reform (Audit)01-2015-10 Date: 13/10/2020

REQUEST FOR PROPOSAL (Short Tender Notice)

DATA SHEET

1. Name of the Work Selection of CAG empaneled Chartered Accountant Firms for Audit of Books & Accounts in 51 Urban Local Bodies(ULBs),Jharkhand.

2. Descriptions and Objectives of the Assignments

Audit of all Books and Accounts from FY 2019-20 to next two years like Cash Book, Ledger, Assets Register all Subsidiary Register, Balance Sheet, Financial Statement, Receipt Payment A/C, Income & Expenditure A/C, physical verification of Assets & Stocks and all relevant records of the concern ULB.

3. Language of Documentation English

4. Mode of submission of bids By Speed /Registered Post/By Hand (Open Tender)

5. Cost of Tender Document &

Processing Fee (In INR)

Cost of Tender Document: 500.00 (Rs. Five Hundred only) for each package.

Processing Fee: 2000.00 (Rs.Two thousand only) for each package.

6. No. of Package 5 different Packages.

7. Method of Selection Quality and Cost Based Selection (QCBS) Method.Wherein 70% weightage will be given to the technical proposal and 30% to the financial proposal

8. Time Period 2 Months for one financial year.

9. Minimum Audit Fees per ULB per year

Rs. 50,000.00/- for Nagar Nigam and Notified Area.

Rs 35,000/- for Nagar Parishad.

Rs 25,000/- for Nagar Panchayat.

(Excluding GST)

10. Date of starting of sale/downloading of Tender Documents.

15/10/2020 at 10:00 Hrs from

udhd.jharkhand.gov.in (Tender link)

11. Last date of submission of pre-bid queries through email.

26/10/2020 till 14:00 Hrs at ([email protected])

12. Last Date/Time for submission of Bids 09/11/2020 by 16:00 Hrs

13. No of Copies of Technical and Financial Proposal for each package.

1 copy of Technical Proposal

1 copy of Financial proposal

14. Date of Technical Bid Opening 09/11/2020 by 17:00 Hrs

15. Bid Sale/ Submission address Director, State Urban Development Agency (SUDA), Room No: 405, 4th Floor, Project Building, Dhurwa, Ranchi-834004, Jharkhand.

16. Helpline no. 0651-2446640

Sd/- Director

State Urban Development Agency, Urban Development and Housing Department,

Jharkhand

mailto:[email protected]




NIT No.: 07/N.V/Reform (Audit)01-2015-10 Date :13/10/2020

Selection of CAG Empaneled Chartered Accountant Firms for Audit of Books &

Accounts in 51 Urban Local Bodies (ULBs), Jharkhand.

1. The Secretary, Urban Development and Housing Department, Government of

Jharkhand (GoJ), provides guidance to Nagar Nigam, Nagar Parishad, Nagar

Panchayat and NACs in performing their day to day activities in adherence to the

policies, procedures and guidelines provided by the Urban Development and Housing

Department, to achieve effective civic administration.

2. The Department, in its supervisory role, monitors the functioning of the ULBs against

key parameters such as the tax collections, project and civic works executed, the

implementation of the schemes of the Government, Urban Reform implementation

etc. It also includes the supervision of the regulatory and developmental functions of

the ULBs.

3. The 74th Constitutional Amendment Act, 1992 (CAA) gave constitutional status to

ULBs in India and empowered them to function as local self-governments to provide

good urban governance. One of the many facets of improved good urban governance

is maintaining of complete set of accounting records to ensure accountability and

transparency in all government functions. This necessitates all ULB to convert their

existing accounting and financial management system to such methods which have

wide acceptance.

4. Specifies that the ULB would maintain accounts of income and expenditure of the

municipality by way of Accrual Based Double Entry Accounting System. Section 113

of the Act prescribes that the State Government shall prepare and maintain a manual

containing details of all financial matters and procedures relating thereto in respect of

the municipality. Accordingly, the Urban Development and Housing Department

prepared the Jharkhand Municipal Accounts manual. The manual adopts the

principles and policies suggested by the National Municipal Accounts manual

developed by Ministry of Housing and Urban Affairs, Govt. of India. All ULBs of

Jharkhand are now using the accounting framework as recommended in the manual.

With reference to section 117(1) of the Jharkhand Municipal Act 2011, Urban

Development and Housing Department, Government of Jharkhand proposes to hire

services of CAG empanelled Chartered Accountant (CA) firms to Audit the Books and

Accounts in 51 ULBs of Jharkhand covered in 5 different packages. Accordingly

sealed Proposals are invited from experienced and well qualified C.A. Firm for the

same.


5. PACKAGE WISE NAME OF ULB’S & POPULATION ARE AS FOLLOWS:

Sl. No. Commissioner District Sl. No. ULB Name Population

1

Package No. 1.

North Chhotanagpur (Hazaribagh)

Dhanbad 1 Dhanbad Nagar Nigam 1162472

2 Chirkunda Nagar Parishad 45508

Giridih

3 Giridih Nagar Nigam 114533

4 Dhanwar Nagar Panchayat 15297

5 Badki Saraiya Nagar Panchayat

22889

Hazaribagh 6 Hazaribagh Nagar Nigam 142489

Koderma

7 Koderma Nagar Panchayat 87867

8 Jhumriteliya Nagar Parishad 24633

9 Domchanch Nagar Panchayat

24531

Bokaro

10 Chas Nagar Nigam 156888

11 Phusro Nagar Parishad 89178

12 Gomia Nagar Parishad 48141

Chatra 13 Chatra Nagar Parishad 49985

14 Bachra Nagar Panchayat 12969

Ramgarh 15 Ramgarh Nagar Parishad 123875

2

Package No. 2.

South Chhotanagpur

(Ranchi)

Ranchi 1 Ranchi Nagar Nigam 1073427

2 Bundu Nagar Panchayat 21054

Gumla 3 Gumla Nagar Parishad 51264

Lohardaga 4 Lohardaga Nagar Parishad 57411

Simdega 5 Simdega Nagar Parishad 42944

Khunti 6 Khunti Nagar Panchayat 36390

3

Package No. 3.

Santhal Pargana (Dumka)

Dumka 1 Dumka Nagar Parishad 47584

2 Basukinath Nagar Panchayat 17123

Deoghar 3 Deoghar Nagar Nigam 203123

4 Madhupur Nagar Parishad 55238

Godda 5 Godda Nagar Parishad 48480

6 Mahagama Nagar Panchayat 30701

Pakur 7 Pakur Nagar Parishad 45840

Sahebganj

8 Sahebganj Nagar Parishad 88214

9 Rajmahal Nagar Panchayat 22514

10 Barharwa Nagar Panchayat 24133

Jamtara 11 Mihijam Nagar Parishad 40463

12 Jamtara Nagar Panchayat 29415

4

Package No. 4.

Kolhan ( Chaibasa)

West Singhbhum

1 Chaibasa Nagar Parishad 69565

2 Chakradharpur Nagar Parishad

56531

3 Chakulia Nagar Panchayat 16306


Sl. No. Commissioner District Sl. No. ULB Name Population

East Singhbhum

4 Jamshedpur NAC 677350

5 Mango Nagar Nigam 223805

6 Jugsalai Nagar Parishad 49660

Saraikela-Kharswan

7 Saraikela Nagar Panchayat 14252

8 Adityapur Nagar Nigam 174355

9 Kapali Nagar Parishad 43256

5 Package No. 5.

Palamau

Palamau

1 Medininagar Nagar Nigam 78396

2 Husainabad Nagar Panchayat

29241

3 Bishrampur Nagar Parishad 42925

4 Chhatarpur Nagar Panchayat 28450

5 Hariharganj Nagar Panchayat

29241

Gharwa

6 Gharwa Nagar Parishad 46059

7 Majhiaon Nagar Panchayat 18349

8 Bansidhar Nagar Nagar Panchayat

32725

Latehar 9 Latehar Nagar Panchayat 26981

6. Bid documents can be obtained from Directorate of State Urban Development

Agency (SUDA), Urban Development and Housing Department, 4th Floor,

Project Building, Dhurwa, Ranchi- 834004, Jharkhand on any working day upon

payment of Rs. 500.00 (Five Hundred only) for each package in the shape of D/D, in

favour of Director, State Urban Development Agency, Payable at Ranchi or

downloaded from udhd.jharkhand.gov.in (Tender link). If the RFP is downloaded from

the website the cost of RFP Rs. 500 (Five Hundred only) for each package will be

submitted along with Technical Bid in shape of D.D in favour of Director, State Urban

Development Agency (SUDA), Payable at Ranchi.

7. The last date for submission of proposal initially is 09/11/2020 by 16:00 hrs. The

Technical Proposal will open on the same date: 09/11/2020 at 17:00 hrs.

8. All communications should be addressed to:

Director,

State Urban Development Agency(SUDA),

Urban Development and Housing Department, Govt. of Jharkhand,

Room No- 405, 4th Floor, Project Building, Dhurwa, Ranchi- 834004,

Phone: 0651-2446640,Email: [email protected]

9. The Technical Bid and the Financial Bid of the bidders will be opened before the duly

constituted committee at suitable time, date and place and date of opening of financial

bid will be communicated to the technically qualified bidders.

10. The Urban Development and Housing Department reserves the right to accept or

reject in part or as a whole, any of the proposal received without assigning any reason

thereof.



11. Tender Fee, Bid Security and Total Time Period of Work is defined in Table 1.1.

Table – 1.1

Sl. No.

Name of the Work Processing fee Cost of Tender Document

1 Request for proposal for Selection of CAG empaneled Chartered Accountant Firms for Audit of Books and Accounts of 51 Urban Local Bodies (ULBs), Jharkhand.

Rs. 2000/- for each package in the form of demand draft in favor of “Director, State Urban Development Agency (SUDA) payable at Ranchi.

Rs 500/- for each package in form of demand draft in favor of “Director, State Urban Development Agency (SUDA) payable at Ranchi.

12. Initially, Period of availability of tender date & time/pre-bid queries submission/date

of submission/opening of tender papers are as given in Table 1.2.

Table – 1.2

S.

No.

Procurement

Agency

Place of

opening

Availability of tender

document Pre Bid Conference

Date & Time of

Bid Opening

A B C D E F

1. State Urban Development Agency (SUDA), Urban Development and Housing Department, Govt. of Jharkhand

State Urban Development Agency, Room no- 405, 4th Floor, Project Bhawan, Dhurwa, Ranchi-834004,

Jharkhand.

Starting of sale/downloading of Bid Document from

15/10/2020

at 10:00 Hrs.

Last Day of Bid

submission

09/11/2020 till 16:00 Hrs.

Request to submit the pre-bid queries in the following email ID : [email protected] by 26/10/2020 till 14:00 Hrs. The queries will be replied through e-mail and will be uploaded on the website under Tender section.

09/11/2020 at 17:00 Hrs in the Chamber of Director, State Urban Development Agency (SUDA), Room No-405, 4TH Floor, Project Building, Dhurwa, Ranchi-834004

13. Cost of Tender document and Processing fee (non-refundable) as mentioned in table 1.1 above), will be in the form of Demand Draft drawn on a Nationalized/Scheduled Bank, in favour of "Director, State Urban Development Agency (SUDA), Urban Development and Housing Department, Government of Jharkhand" payable at Ranchi.

14. Cost of Tender document and processing fee envelop should contain the NIT No. and Package Number and to be addressed to the Director, State Urban Development Agency (SUDA) with detail of bidder’s addresses as well.

15. The last date for submission of the Tender is 09/11/2020 till 16:00 hrs in the Office of "Director, State Urban Development Agency (SUDA), Urban Development and Housing Department, Government of Jharkhand,4thFloor, Room No 405, Project Building, Dhurwa, Ranchi-834004, Jharkhand on all working days. Either by registered post/Speed post or by hand. Only those bids will be entertained whose



cost of tender document (tender fee) and processing fee will be received along with the bid. SUDA will not be held responsible for the postal delay, if any, in the delivery of the document or non-receipt of the same.

16. Submission of Proposal: Bidders shall submit their proposal at the address and within the time frame as specified in the RFP.

The tender Fee and processing fee in original shall be submitted in a sealed cover super scripted “tender Fee and processing fee” for Audit of books and Accounts.

The technical Proposal shall be submitted in a sealed cover super scripted “Technical Proposal for Audit of books and Accounts” with the all documents inside as per list of document given in RFP.

The financial Proposal shall be submitted in a sealed cover super scripted “Financial Bid for Audit of books and Accounts” in the duly filled in Financial Proposal Formats as given in RFP.

The above mentioned all 3 sealed covers shall be kept in sealed and super scribed with the name of Firm, its address, name of the work and Package No as given in the RFP.

17. The interested bidders should confirm their participation and must submit their queries through email- [email protected] by 26/10/2020 till 14:00Hrs. Queries received after the set time limit shall not be considered.

18. The pre-bid queries will be replied to the concern in email ID as well as the replies will be uploaded on the departmental website- udhd.jharkahnd.gov.in.

19. The undersigned reserves the right to accept or reject all proposals without assigning any reason.

20. A CA Firm can apply for more than one package in separate envelops with all relevant forms and Documents, Tender Document fee, Tender Processing Fee etc. In a single envelop proposal for more than one package will not be considered.

21. For any other clarifications related to bid submission, firms may contact State Urban Development Agency, Govt. of Jharkhand telephonically on telephone no: 0651- 2446640 before the last date of submission of the bid document during working hours.

22. Other details can be seen in the RFP document. 23. Bids without requisite details/documents are liable for rejection and Department will

not entertain any further communication in such cases.

Sd/- Director

State Urban Development Agency,



Section-1

Instruction to Bidders


INSTRUCTION TO BIDDERS

1. MINIMUM ELIGIBILITY CRITERIA

1.1 Technical capabilities:

1.1.1. C.A. Firm (Lead firm and/or associate separately) should have at least

5 years of experience of working in the internal and statutory audit of Books and Accounts in Government sector/PSUs/ULB in India.

1.1.2. The C.A. firm must be CAG empaneled (For the FY 2019-20).

1.1.3. The Firm must be registered with ICAI (Institute of Chartered Accountants of India) and operational in India since last 5 (Five) years

from the date of publish of this RFP and must remain operational

thereafter.

1.1.4. The Firm must not have been blacklisted or Debarred by any State Govt./Govt. Agency/PSU/GoI during last three years from time of submission of tender. The firm must submit an affidavit to this effect

signed by authorized signatory as mentioned in the RFP

1.2 Financial capacity

1.2.1 Average Annual turnover of the Firm from Consultancy services in last

3 (three) Financial years (2017-18, 2018-19 and 2019-20) must be equal or greater than 50 Lakhs (Fifty Lakhs) per annum.

2. LANGUAGE OF THE PROPOSAL:

2.1 Applicant Firms are required to furnish all information and documents, as called for in this Document, in English Language. Any printed literature

furnished by the Applicant Firm may be in another language, provided that this literature is accompanied by an English translation, in which case, for the

purpose of interpretation of the document, the English version duly authenticated will prevail.

3. SIGNING OF THE PROPOSAL:

3.1 Proposal shall be signed by the Applicant Firm or by his duly authorized person holding power of attorney for signing the Proposal document. A copy of

registered power of attorney shall accompany the Proposal.

3.2 In case the Proposal is submitted by a proprietary firm, it shall be signed by the proprietor giving his full name and also full name of his firm with present address.

3.3 In case the Proposal is submitted by a partnership firm, it shall be signed by the authorize partners/Lead Partner of the firm otherwise Proposals shall not

be considered in the process of Proposal evaluation in case of the Proposal being submitted by one partner firm, such firm would have to be declared as

lead partner by all other partners. All the correspondence would be done in the name of lead partner only.

3.4 If the Proposal is submitted by a company, it shall be signed by a duly

authorized person holding power of attorney for signing the Proposal

document. A certified copy of registered power of attorney shall accompany

the Proposal.


3.5 The original Proposal shall be printed, typed or written in ink, and shall be

signed by a person or persons duly authorized to sign on behalf of the

Applicant Firm. All pages of the Proposal and where entries or amendments

have been made shall be initiated by the person or persons signing the

Proposal.

3.6 The Proposal shall ordinarily contain no alterations or additions, except those

to comply with instructions issued by the Department, or as may be necessary

to correct errors made by the applicant in which case the person or persons

signing the Proposal shall initial such corrections.

3.7 All witnesses and sureties shall be persons of status and probity. Their full

names, occupations and addresses shall be provided below their signatures.

All signatures shall be dated.

4. COST OF PROPOSAL:

4.1 The Applicant Firm shall bear all costs associated with the preparation and

submission of its Proposal, including cost of presentation for the purposes of

clarification of the Proposal, if any.

4.2 Department in no case shall be responsible or liable for any such costs

regardless of the conduct or outcome of the bidding process.

4.3 Any Applicant Firm wishing to undertake ULB visits for familiarization with site

conditions may do so. All costs towards ULB visits, conference and submission

of documents shall be borne by the Applicant Firm themselves.

4.4 All payments to the C.A. Firm shall be made in INR in accordance with the

provisions.

5. DEPARTMENT’S RIGHT TO ACCEPT ANY PROPOSAL AND TO REJECT ANY

OR ALL PROPOSALS:

5.1 The decision of the Secretary, Urban Development and Housing Department,

Government of Jharkhand regarding the opening of Proposals, evaluation and

acceptance of the Proposal shall be final and binding on all the Applicant

Firms.

5.2 The Department reserves the right to accept or reject any Proposal, and reject

all Proposals at any time prior to award of Proposal, without thereby incurring

any liability to the affected Applicant Firm or Applicant Firms or any obligation

to inform the affected Applicant Firm or Applicant Firms of the grounds for the

department’s decision.

6. PERFORMANCE GUARANTEE:

6.1 The qualified and selected applicant shall submit irrevocable performance

bank guarantee, in prescribed format- Form No. F-3 from a scheduled

commercial bank, at the time of signing the agreement.

6.2 The successful applicant shall provide a Bank Guarantee amounting to 2% of

the Project amount towards Performance Guarantee in favour of “Director,


State Urban Development Agency, (SUDA), Urban Development and

Housing Department”, Payable at “Ranchi” for the agreement period.

7. SIGNING OF AGREEMENT:

7.1 The successful Applicant Firm will report in the office of the Director, State

Urban Development Agency (SUDA), Urban Development and Housing

Department, Government of Jharkhand with required non-judicial paper of

appropriate amount, to be purchased from the State of Jharkhand only, within

15 (fifteen) days, for signing the formal agreement between the parties.

7.2 The agreement will be signed between Directorate and C.A. Firm.

7.3 The signing of the agreement shall take place only after furnishing of

performance guarantee. The agreement will be signed by the legally

authorized person of the Applicant Firm as stated in RFP. If the applicant fails

to sign the agreement in the specified time period, the performance guarantee,

shall be forfeited.

8. TIME SCHEDULE OF CONSULTANCY:

The CA Firm, thus selected, would be expected to provide services within the time

frame as finalized by the Urban Development and Housing Department, Government

of Jharkhand.

9. SUBMISSION OF REPORT:

The bidder is required to submit the complete set of audited financial statement of the

concerned financial year as mentioned in Clause 9 and updated fixed assets register

along with the completion certificate from the ULBs to the department and one

complete set to the ULB.

Further the bidder is required to submit the soft copy of the report written in a C D to

the SUDA and ensure the uploading of the Audited Financial Statements are

uploaded on the Departmental Portal.

10. INFORMATION FOR C.A FIRM FOR SUBMITTING THE PROPOSAL:

10.1 TECHNICAL PROPOSAL

Bidders shall submit the technical proposal in the formats given in RFP.

While submitting the Technical Proposal, the Bidder shall, in particular,

ensure that:

10.1.1 The processing fee is provided;

10.1.2 All forms are submitted in the prescribed formats and signed by the authorised

signatories;

10.1.3 CVs and experience certificate of all Key Personnel have been included; one

key personnel will consider for one package only.

10.1.4 No alternative proposal for any Key Personnel is being made and CV for each

position has been furnished;


10.1.5 The CVs and experience certificate have been recently signed and

dated, in blue ink by the respective Personnel and Countersigned

by the Bidder. Photocopy or unsigned /countersigned CVs shall be

rejected; The CVs shall contain an undertaking from the respective

Key Personnel about his/her availability for the duration specified in

the RFP;

10.1.6 Key Personnel would be available for the period indicated in the

TOR;

10.1.7 No Key Personnel should have attained the age of 75 years at the

time of submitting the proposal;

10.1.8 Failure to comply with the requirements spelt out in above Clause

shall make the Proposal liable to be rejected.

10.1.9 lf an individual Key Personnel makes a false averment regarding his

qualification, experience or other particulars, he shall be liable to be

debarred for any future assignment of Directorate, State Urban

Development Agency (SUDA) / Urban Development and

Housing Department for a period of 3 (three) years. The award of

this Consultancy to the Bidder may also be liable to cancellation in

such an event.

10.1.10 The proposed team shall include experts and specialists (the

"Professional Personnel") in their respective areas of expertise and

managerial/support staff such that the C.A. Firm should be able to

complete the Consultancy within the specified time schedule. The

team shall comprise other competent and experienced professional

personnel in the relevant areas of expertise (where applicable) as

required for successful completion of this Consultancy. The CV of

each such professional personnel, if any, should also be submitted

in the prescribed format which is attached in this RFP.

10.1.11 Directorate, State Urban Development Agency (SUDA) reserves

the right to verify all statements, information, and documents

submitted by the Bidder in response to the RFP.


10.2 FINANCIAL PROPOSAL:

10.2.1 Bidders shall submit the financial proposal in the prescribed format

which is attached in this RFP (the "Financial Proposal") clearly

indicating the total cost of the Consultancy ULB wise, for all the

ULBs included in the Packages in Indian Rupees. The total amount

/Cost will be considered package wise. It’s signed by the Bidder's

Authorized Representative. In the event of any difference between

figures and words, the amount indicated in words shall prevail.

10.2.2 While submitting the Financial Proposal, the Bidder shall ensure the

following:

All the costs associated with the assignment shall be included in the Financial Proposal.

The Financial Proposal shall take into account all expenses and tax liabilities (Excluding Goods & Service Tax).

Costs shall be expressed in INR.

10.2.3 The details of the minimum Audit Fee for the said work is as follows:

Sl. No. Commissioner District Sl. No. ULB Name Minimum Audit Fee

(Rs)

1

Package No. 1.

North Chhotanagpur (Hazaribagh)

Dhanbad 1 Dhanbad Nagar Nigam 50,000/-

2 Chirkunda Nagar Parishad 35,000/-

Giridih

3 Giridih Nagar Nigam 50,000/-

4 Dhanwar Nagar Panchayat 25,000/-

5 Badki Saraiya Nagar Panchayat

25,000/-

Hazaribagh 6 Hazaribagh Nagar Nigam 50,000/-

Koderma

7 Koderma Nagar Panchayat

25,000/-

8 Jhumriteliya Nagar Parishad

35,000/-

9 Domchanch Nagar Panchayat

25,000/-

Bokaro

10 Chas Nagar Nigam 50,000/-

11 Phusro Nagar Parishad 35,000/-

12 Gomia Nagar Parishad 35,000/-

Chatra 13 Chatra Nagar Parishad 35,000/-

14 Bachra Nagar Panchayat 25,000/-

Ramgarh 15 Ramgarh Nagar Parishad 35,000/-

2 Package No. 2. Ranchi 1 Ranchi Nagar Nigam 50,000/-

2 Bundu Nagar Panchayat 25,000/-



(Rs)

South Chhotanagpur

(Ranchi)

Gumla 3 Gumla Nagar Parishad 35,000/-

Lohardaga 4 Lohardaga Nagar Parishad 35,000/-

Simdega 5 Simdega Nagar Parishad 35,000/-

Khunti 6 Khunti Nagar Panchayat 25,000/-

3

Package No. 3.

Santhal Pargana (Dumka)

Dumka

1 Dumka Nagar Parishad 35,000/-

2 Basukinath Nagar Panchayat

25,000/-

Deoghar 3 Deoghar Nagar Nigam 50,000/-

4 Madhupur Nagar Parishad 35,000/-

Godda

5 Godda Nagar Parishad 35,000/-

6 Mahagama Nagar Panchayat

25,000/-

Pakur 7 Pakur Nagar Parishad 35,000/-

Sahebganj

8 Sahebganj Nagar Parishad 35,000/-

9 Rajmahal Nagar Panchayat

25,000/-

10 Barharwa Nagar Panchayat

25,000/-

Jamtara 11 Mihijam Nagar Parishad 35,000/-

12 Jamtara Nagar Panchayat 25,000/-

4

Package No. 4.

Kolhan ( Chaibasa)

West Singhbhum

1 Chaibasa Nagar Parishad 35,000/-

2 Chakradharpur Nagar Parishad

35,000/-

East Singhbhum

3 Chakulia Nagar Panchayat 25,000/-

4 Jamshedpur NAC 50,000/-

5 Mango Nagar Nigam 50,000/-

6 Jugsalai Nagar Parishad 35,000/-

Saraikela-Kharswan

7 Saraikela Nagar Panchayat

25,000/-

8 Adityapur Nagar Nigam 50,000/-

9 Kapali Nagar Parishad 35,000/-

5 Package No. 5.

Palamau

Palamau

1 Medininagar Nagar Nigam 50,000/-

2 Husainabad Nagar Panchayat

25,000/-

3 Bishrampur Nagar Parishad

35,000/-

4 Chhatarpur Nagar Panchayat

25,000/-

5 Hariharganj Nagar Panchayat

25,000/-

Gharwa 6 Gharwa Nagar Parishad 35,000/-

7 Majhiaon Nagar Panchayat 25,000/-



(Rs)

8 Bansidhar Nagar Nagar Panchayat

25,000/-

Latehar 9 Latehar Nagar Panchayat 25,000/-

11. EVALUATION OF THE PROPOSAL (QCBS):

11.1 Technical Evaluation: -

Proposals are to be submitted in two covers. Technical covers are opened first

and evaluated. Those securing less than the minimum are rejected and the

financial cover of the rest are opened. The qualified bidders will be intimated

about the opening of price bid. Proposal is to be evaluated in “QCBS (Quality

and cost basis method)” Method. Proposal will be evaluated on the basis of

Technical & Financial Proposals submitted by the Bidder. Financial Proposal

of only those Bidders will be opened who have secured a minimum of 70 marks

in Technical Evaluation. The Proposals submitted will be evaluated using the

following criteria:

S.N. Criteria Marks

1 Firm’s General Experience & Experience in similar assignments 45

2 Manpower strength, experience of Team Leader & other key

professionals 45

3 Adequacy of the proposed work plan and methodology 10

Total Points- 100

11.1.1 The number of points to be given under each evaluation sub-criteria

for firm’s general experience in the field of assignment is:

S. No.

Description Criteria Marks

1 General Experience of the firm : (Bidders must submit incorporation certificate of the firm and work orders/contract Agreement documents)

Up to 5 Years

2 marks for each additional year

(Example:- A firm having experience of 10 years will get 10 marks.)

0

Maximum 10 Marks

2 Experience in ULBs: Number of Completed Projects for Statutory Audit / Internal Audit / Accrual Based Double Entry Accounting System of ULBs, handled in the last 5 financial years.

Up to 3 projects /assignments ULBs.

Completion of 4 projects /assignments.

3 mark for each additional project/ assignment.

0

3 marks

Maximum 15 Marks


S. No.

Description Criteria Marks

(Bidders must submit work orders/contract Agreement documents. For this purpose one work order will count for one project/assignment)

(Example:- A firm having completed 8 projects will get 15 marks.)

3 Experience in similar nature of work: Number of Completed Projects for Audit of any Govt. department (Central/State Govt/PSUs/Banks) other than ULBs in the last 5 financial years.

(Bidders must submit work orders/contract Agreement documents. For this purpose one work order will count for one project/assignment)

Up to 3 projects /assignments.

Completion of 4 projects /assignments.

2 mark for each additional project/assignment

(Example:- A firm completed 8 projects will get 10 marks.)

0

2 marks

Maximum 10 Marks

4 Average Annual Turnover from consultancy services during last 3 Financial years will be at least 50 lakhs.

(Bidders must submit C.A certificate for turnover along with Balance Sheet and P/L A/C.The last three Financial year should be read as FY : 2017-18, 2018-19 and 2019-20)

50 Lakhs

1 mark for every additional 10 lakhs.

(Example:- A firm having turnover of 150 Lakhs will have 10 marks.)

0

1 marks

Maximum 10 Marks

Total Marks - 45

11.1.2 The number of points to be given under each evaluation sub-criteria

for competence/experience of key staff for the assignment is: (Pl.

attached the relevant proof)

Sl. No.

Position Criteria Marking Maximum

Marks

1. Team Leader/ Municipal Audit Expert (1 Person)

Minimum 5 years of experience in relevant field.

(Bidders must submit experience certificate of Team leader.)

For 5 years of experience.

3 marks for each additional year of experience.

0

Maximum 15 Marks

2. Audit

Manager

(2 person)

Each Audit Manager should

have minimum 3 years of

experience in relevant field.

(Bidders must submit

experience certificate of Audit

Manager.)

For 3 years of experience

Each Audit Manager)

Thereafter, 2.5 marks for each

additional year.

0

Maximum

15 Marks

3. Audit

Assistant

(10 persons)

Minimum 2 years of average

experience in relevant field.

For average 2 years of

experience.

0


Sl. No.

Position Criteria Marking Maximum

Marks

(Bidders must submit

experience certificate of Audit

Assistants.)

Thereafter, 5 marks for each

additional year of average

experience.

Maximum

15 Marks

Total Marks - 45

Grand Total ( Table 12.1.1+12.1.2) 90

11.1.3 The number of marks to be given under each evaluation sub-criteria

for qualifications of key staff and Adequacy of the proposed work plan

and methodology in responding to TOR:

S. No. Criteria Marks

1.

Adequacy of the proposed work plan and

methodology, Resource engagement & Institutional

support.

10

Total Marks - 10

Grand Total ( Table 12.1.1+12.1.2+12.1.3) 100

Note:-

i. Financial Proposal of only those Bidders will be opened who

have secured a Minimum of 70 marks out of 100 marks in

Technical Evaluation.

ii. One Professional will be eligible for one package only.

iii. Nos. of Audit Manager and Audit Assistant may be increase as

per the requirement.

11.2 PUBLIC OPENING AND EVALUATION OF FINANCIAL BID

11.2.1 Public Opening of Financial Proposals

11.2.1.1 At the public opening of Financial Proposals, Consultant’s representatives who choose to attend will sign on Attendance Sheet.

11.2.1.2 The marks of each Technical Proposal that met the minimum mark of 70 will be read out aloud and their financial proposal will be open.

11.2.1.3 Each Financial Proposal will be checked to confirm that it has remained sealed and unopened.

11.2.1.4 The department’s representative will open each Financial Proposal. Such representative will read out aloud the name of the Consultant and the total price shown in the Consultant’s Financial Proposal. This information will be recorded in writing by the representative.


11.2.2 Evaluation of Financial Proposals

11.2.2.1 Following the ranking of Technical Proposals, financial proposals shall be opened publicly.

11.2.2.2 Consultants’ attendance at the opening of Financial Proposals is optional.

11.2.2.3 The tender committee will review the detailed content of each Financial Proposal. During the review of Financial Proposals, the Committee and any UD&HD, Jharkhand personnel and others involved in the evaluation process, will not be permitted to seek clarification or additional information from any Consultant, who has submitted a Financial Proposal. Financial Proposals will be reviewed to ensure these are free from any arithmetical or computational errors:

11.2.2.4 The detailed contents of each Financial Proposal will be subsequently reviewed.

11.2.2.5 Following completion of evaluation of Technical and Financial Proposals, the firm which has been selected for clusters will be invited for contract negotiation.

The lowest evaluated Financial Proposal (Fm) is given the maximum financial score (Sf) The formula for determining the financial scores (Sf) of all other Proposals is calculated as following:

Sf = 100 x Fm/ F, in which

Sf” is the financial score, “Fm” is the lowest price, and “F” the price of the proposal under consideration.

The weights given to the Technical (T) and Financial (P) Proposals are:

T = 70 [ weight]

P = 30 [ weight]

Proposals are ranked according to their combined technical (St) and financial(Sf) scores using the weights.

T = the weight given to the Technical Proposal; P = the weight given to the Financial Proposal; T + P = 1) as following: S = St x T% + Sf x P%. (Final Score)

12. THE MANDATORY KEY POSITIONS FOR THE ASSIGNMENT:

S.No. Position Qualifications, Skills and Experience

1 Team

Leader/

Municipal

Audit

Expert

1. Chartered Accountant with at least 5 years of post-

qualification experience in the relevant field.

2. Must have successfully managed & completed at least

3 nos of similar assignments in Audit of Books and

Accounts in Govt. Department.


3. Fluent in Hindi and English;

4. Proficiency in use of Tally

(For Team Leadership, the expert must possess

leadership qualities )

2 Audit

Manager

1. Chartered Accountant with at least 3 years of post-

qualification experience in relevant field;

2. Must have successfully managed & completed at least

1 no ’s of similar assignments in Audit of Books and

Accounts in Govt. Department.

3. Fluent in Hindi and English;

4. Proficiency in use of Tally

3

Audit

Assistant

1. Commerce Graduate / Article Assistant (CA/Costing

Intermediate completed & 1 years of article-ship) with at

least 2 years of post-qualification experience in relevant

field.

2. Fluent in Hindi/English

3. Proficiency in use of Tally.

Note: The Firm may in addition, procure the services of Expert/ Qualified CA/ Cost

Accountant as per the requirement of services.

13. PRE-BID QUERIES

13.1 The firms are requested to submit their queries as per the designated date and

time to the e-mail ID: [email protected]. The replies to the queries

will be uploaded on the departmental website. The Department shall

Endeavour to provide clarifications and such further information as it may, in

its sole discretion, considered appropriate for facilitating a fair, transparent and

competitive Selection Process.

14. CLARIFICATIONS:

14.1 Applicants requiring any clarification on the RFP may send their queries to the

SUDA in writing before the date mentioned. The queries should be sent to

[email protected] Directorate shall endeavour to respond to the

queries within the period specified therein.

14.2 Directorate will post the reply to all such queries on the Official Website.

Directorate reserves the right not to respond to any questions or provide any

clarifications, in its sole discretion, and nothing in this Clause, shall be

construed as obliging Directorate to respond to any question or to provide any

clarification.

mailto:[email protected]:[email protected]


15. AMENDMENT OF RFP:

15.1 At any time prior to the deadline for submission of Proposal, Department, for

any reason, whether at its own initiative or in response to clarifications

requested by an Applicant Firm, modify the RFP document by the issuance

of Addendum/ Amendment and posting it on the Official Website.

15.2 In order to afford the Applicant firms a reasonable time for taking an

amendment into account, or for any other reason, the Department may, in its

sole discretion, extend the Proposal Submission/Opening Date.

15.3 The Applicant Firms shall submit the Proposal in PDF format with all pages

numbered serially and by giving an index of submissions. Each page of the

submission shall be initialled by the Authorized Representative of the Applicant

Firm as per the terms of the RFP.

16. MODIFICATION/SUBSTITUTION/WITHDRAWAL OF PROPOSALS

16.1 The Applicant Firm may modify, substitute, or withdraw its Proposal after

submission, provided that written notice of the modification, substitution, or

withdrawal is received by Department prior to closing Date. No Proposal shall

be modified, substituted, or withdrawn by the Applicant Firm on or after the

closing date.

16.2 The modification, substitution, or withdrawal notice shall be prepared, sealed,

marked, and delivered in accordance with the envelopes being additionally

marked “MODIFICATION”, “SUBSTITUTION” or “WITHDRAWAL”, as

appropriate.

17. SUBSTITUTION OF KEY PERSONNEL

17.1 Department will not normally consider any request of the Selected Applicant

Firm for substitution of Key Personnel as the ranking of the Applicant Firm is

based on the evaluation of Key Personnel and any change therein may upset

the ranking. Substitution will, however, be permitted if the Key Personnel is not

available for reasons of any incapacity or due to health, subject to equally or

better qualified and experienced personnel being provided to the satisfaction

of Department.

17.2 Department expects all the Key Personnel to be available during

implementation of the Agreement. Department will not consider substitution of

Key Personnel except for reasons of any incapacity or due to health. Such

substitution shall ordinarily be limited to one Key Personnel subject to equally

or better qualified and experienced personnel being provided to the

satisfaction of Department. As a condition to such substitution, a sum equal to

20% (twenty per cent) of the remuneration specified for the original Key

Personnel shall be deducted from the payments due to the C.A. Firm. In the

case of a second substitution hereunder, such deduction shall be 50% (fifty


per cent) of the remuneration specified for the original Key Personnel. Any

further substitution may lead to disqualification of the consultancy.

17.3 Substitution of the Team Leader will not normally be considered and may lead

to disqualification of the Applicant Firm or termination of the Agreement.

18. PAYMENT SHALL BE MADE AS DETAILED BELOW :

Deliverables / Output (ULB wise) Fees

Payable

1. Audited financial statement of the ULB for the concerned Financial Year

as per the Work Order.

2. Audit Report based on the Scope of the work including verification of fixed

asset register.

3. Updated Fixed Assets/Movable Assets Register of the current Financial

Year.

4. Project wise / scheme wise separate audited statement of accounts for the

concerned Financial year.

100%

19. INCOME TAX:

Income tax will be deducted from each bill as applicable and certificate to this

effect shall be issued in due course in prescribed format.

20. GOODS &SERVICE TAX (GST):

The quoted rate should be inclusive of all taxes excluding GST. GST will be paid

as per the current applicable rate of Goods &Service Tax.

21. PRICE:

Bidders are requested to quote their rates Package wise (refer FORM FIN-1 & 2).

The rate should be inclusive of all kind of taxes and duties excluding Goods &

Service Tax. The C.A. Firm will be required to submit justification to substantiate

the price break-up of the rate quoted in price bid.

22. INSURANCE:

No insurance charge in any shape will be paid by the department. However, the

C.A. Firm may ensure their staff and equipment for damage or loss in transit or

during the work, at their own cost. Department will not be responsible for any loss

for the damage to the equipment or person for any unforeseen reasons.

23. NUMBER OF PROPOSALS

No Bidder or its Associate shall submit more than one Application/Proposal for the

same Package of this bid. Bidder however can submit proposal (Technical and

Financial) for more than one package.


24. SUBMISSION, OPENING AND EVALUATION OF PROPOSAL

24.1 Submission of Proposal: The RFP fee along with the processing fee and all

related documents as described in RFP should be in a sealed cover which will

be received in the office of:

Director,

State Urban Development Agency (SUDA),

Room no- 405, 4thFloor, Project Building,

Urban Development and Housing Department, Dhurwa, Ranchi – 834004

Fees: Cover-1- The C.A. Firms will have to submit a non-refundable tender

document cost of Rs. 500/- and processing fee of Rs. 2,000/- for each package

by bank draft of any Nationalized/ Scheduled Bank in favor of Director, State

Urban Development Agency (SUDA), Payable at Ranchi.

Cover-2- Technical Proposal

Cover-3- Financial Proposal

In Cover-2, All details as asked in this RFP is to be submitted, The Bid will be

treated as non-responsive if the relevant documents as mentioned in the NIT

is missing.

In Cover-3, duly filled Financial Proposal in the format as given in this RFP is

to be submitted.

The above mentioned a l l 3 sealed covers shall be kept in an envelope of

bigger Size and shall be properly sealed and super scribed with the name of

Firm, its address, name of the work and Package No as given in the RFP.

24.2 Opening of Proposal: Bidders are required to submit the requisite RFP

document Fee and processing fee as described in this RFP, only those

proposals will be opened whose processing fee and RFP document fee

reaches the Tender Inviting authority in prescribed address and time as

specified in this RFP. Bid will be opened in two cover system as described,

Financial Proposal of only those bidders will be opened who has qualified in

the Technical Bid and declared “technically qualified”.

25. TOR WILL FORM PART OF AGREEMENT:

The notes to C.A. Firm, other terms & conditions, detailed scope of work and TOR

shall be part of the Agreement.

26. ADDRESS:

The bidder will have to furnish his full permanent and local address (Head office

and Branch Office) in the bid document along with the name of nodal person for

this project along with Phone No., Fax No., Mobile No. and e-mail address. If any

letter is sent at the given address by email or by post does not reach him or returns


undelivered, it will be deemed to have reached to the bidder, once the letter is

posted in post office or sent by email.

27. LIST OF DOCUMENT ATTACHED WITH TECHNICAL BID:

The bidder should enclose the list of documents as specified in this RFP.

28. FORCE MAJEURE CLAUSE:

Department will not be responsible for any delay / stoppage of work due to any

reasons like force majeure conditions like natural calamities, civil disturbances,

strike, war etc. and losses suffered, if any, by the C.A. Firm on this account.

Directorate, State Urban Development Agency (SUDA) shall not be liable in any

way to bear such losses and no compensation of any kind whatsoever will be

payable by the Directorate, State Urban Development Agency (SUDA) to the C.A.

Firm.

29. LEGAL MATTERS

All legal matters shall be subject to the jurisdiction of law of courts at Ranchi,

Jharkhand only.

30. DURATION OF THE ASSIGNMENT

The duration of the assignment will be 2 (two) month for audit of 2019-20 and the

same 2 months for all subsequent years.

31. OTHER TERMS AND CONDITIONS

31.1 The C.A Firm shall abide by the instructions issued by the Urban Development

and Housing Department/SUDA/ULBs to him from time to time for the timely

completion of the assigned services.

31.2 Any entity which has been blacklisted by the Central Government, any State

Government, a statutory authority or a public sector undertaking, as the case

may be, from participating in any project, and the bar subsists as on the date

of Proposal, would not be eligible to submit a Proposal either by itself or

through its Associate.

31.3 An Applicant Firm or its Associate should have, during the last three years,

neither failed to perform on any agreement, as evidenced by imposition of a

penalty by an arbitral or judicial authority or a judicial pronouncement or

arbitration award against the Applicant Firm or its Associate, nor been expelled

from any project or agreement nor have had any agreement terminated for

breach by such Applicant Firm or its Associate.

31.4 While submitting a Proposal, the Applicant Firm should attach clearly marked

and referenced continuation sheets in the event that the space provided in the

specified forms in the Appendices is insufficient. Alternatively, Applicant Firms

may format the specified forms making due provision for incorporation of the

requested information.


Section-2

Term of Reference


TERMS OF REFERENCE (TOR) FOR C.A. FIRMS

1. INTRODUCTION:

1.1 The 74th Constitutional Amendment Act, 1992 (CAA) gave constitutional

status to ULBs in India and empowered them to function as local self-

governments to provide good urban governance. One of the many facets of

improved good urban governance is maintaining of complete set of accounting

records to ensure accountability and transparency in all government functions.

This necessitates all ULB to convert their existing accounting and financial

management system to such methods which have wide acceptance.

1.2 The Jharkhand municipal Act, 2011 governs all ULBs of Jharkhand. Section

112 of the Act specifies that the ULB would maintain accounts of income and

expenditure of the municipality by way of Accrual Based Double Entry

Accounting System. Section 113 of the Act prescribed that the State

Government shall prepare and maintain a manual containing details of all

financial matters and procedures relating thereto in respect of the municipality.

Accordingly, the Urban Development and Housing Department prepared the

Jharkhand Municipal Accounts manual. The manual adopts the principles and

policies suggested by the National Municipal Accounts manual developed by

Ministry of Housing and Urban Affairs, Govt. of India. All ULBs of Jharkhand

would now the accounting framework as recommended in the manual.

1.3 Need of Audit as per Municipal Act is given below:

1.3.1. CLAUSE– 114 Financial Statement.

Within four months of the close of a year, ULBs cause to prepare a financial

statement, containing an Income and Expenditure Account and a Receipts and

Payments Account for the preceding year in respect of the accounts of the

municipality. The form of the financial statement, and the manner in which the

financial Statement shall be prepared; shall be such as may be prescribed.

1.3.2 CLAUSE -115 BALANCE SHEET

The ULBs within four months of the close of a year, cause to be prepared a

Balance Sheet of the assets and the liabilities of the municipality for the

preceding year. The form of the Balance Sheet, and the manner in which the

Balance Sheet shall be prepared, shall be such as may be prescribed.

1.3.3 CLAUSE - 116 Submission of Financial statement and balance

sheet to Auditor

The financial statement prepared under section 114 and the balance sheet of

the assets and the liabilities prepared under section 115 shall be placed by the

Municipal Commissioner or the Executive Officer before the Standing


Committee which, after examination of the same, shall adopt and remit them

to the auditor as may be appointed in this behalf by the State Government.

Urban Development and Housing Department, in its supervisory role,

monitors the functioning of the ULBs against key parameters such as the tax

collections, project and civil works execution, implementation of the schemes

in urban areas, Urban Reform implementation etc. Role of UD&HD also

includes the supervision of the regulatory and developmental functions of the

ULBs. Urban Development and Housing Department interacts with several

government departments to enable seamless delivery of urban civic services

to the citizen. Financial Management reforms have been identified as one of

the key area for strengthened Urban Management.

Accordingly, Urban Development and Housing Department, Government of

Jharkhand proposes to hire services of CAG empaneled Chartered

Accountant (CA) firms to Audit the Books and Accounts in 51 ULBs of

Jharkhand covered in 5 packages. Accordingly sealed Proposals are invited

from experienced and well qualified C.A. Firm for the same.

2. OBJECTIVE OF ULBs AUDIT:

2.1. To appraise the ULBs on meeting the objectives of Implementation of Accrual

Based Double Entry Accounting System in specific ULBs.

2.2. To provide a professional opinion on the annual financial statements of ULB

these would include receipt and payment, income and expenditure, balance

sheet, bank reconciliation statement, statement of expenditure and utilization

certificate of concern ULB etc.

2.3. To make specific observations on the effectiveness of the overall financial

management arrangements including the system of internal controls as

documented in the fund management guideline, MOU’s and various guidelines

for specific funding.

2.4. Specific assertion that the grants from the project have been used for intended

purpose and bring to project’s attention any fraud-related issues and activities

including the diversion of funds from intended purpose or misuse of funds.

3. SCOPE OF SERVICES

The Chartered Accountant Firms selected for audit of ULBs accounts shall take into

consideration the following aspects in addition to the attest function with respect to

the financial year under audit:

3.1. All the required books of accounts as prescribed in Jharkhand Municipal Accounts manual and necessary supporting documents (vouchers, bills, receipt and registers), minute books, have been kept in respect of all transactions & that clear synchronizations exists between accounting records, accounts books and the financial reports.

3.2. The financial reports and Utilization Certificates (UCs) submitted by the ULB

to the Government are in agreement with the Grant and U C register and books


of accounts.

3.3. The expenditures made by the ULBs are as per the budget approved by the

council bodies. A variance analysis should have made showing the actual

expenditure with budget figure.

3.4. Adequate records (stock / asset registers) are maintained to properly reflect

the assets of the ULB including details of cost, identification and location of

assets.

3.5. Verification of all vouchers and supporting documents with respect to the

proper sanction and approval by competent authority according to the

delegation of financial power and compliance to laws and prescribed

guidelines.

3.6. Verification of entries in the books of accounts (Cash book, General Ledger,

Advance Ledger, Daily Collection Register, Miscellaneous Receipt Books,

Journal Book, Salary Register, Attendance Register, Cheque issue register,

Grants Received Register etc.) in respect of receipts and expenditure of the

ULBs. Where ever required the auditor may suggest to the ULB to pass the

rectification entries if any.

3.7. Examination of Bank Reconciliation Statement with respect to entries in the

cash book and bank statement of the ULBs.

3.8. To provide recommendations for strengthening of internal controls and other

financial accounting and reporting practices in accordance with best practices.

3.9. Examination of utilization of grants received from Government of Jharkhand

during the financial year under review.

3.10. Examination of category wise income accrued, income received and

receivables reconciliation.

3.11. Examination of advances given and adjusted / recovered from staff and others.

3.12. Examinations of statutory payments are made within the scheduled period,

reconciliations and compliances viz.

Tax deducted at source with appropriate rate on payments made by the

ULBs and deposit of same within the scheduled period

Filling of quarterly T D S statement within the due date

Deduction and deposit of Royalty , & Cess

3.13. Examine whether there is any outstanding demands from any competent

authority against the ULBs as on the Balance Sheet date.

3.14. Physical verification report on Cash, Stores and consumables. (physical

verification report should part of the report)

3.15. Examination of Accounts prepared by respective Municipality as per

Jharkhand Municipal Accounts manual.

3.16. Any other activities necessary for the assignment


4. AUDIT REPORT :

4.1 The report of Auditor shall state:

4.1.1 Whether he has obtained all the information and explanations which

to the best of his knowledge and belief were necessary for the

purposes of his audit;

4.1.2 whether, in his opinion, proper books of account as required by

Authority (as required by the relevant Act), the Accounts Manual, the

Rules and any other stipulations have been kept by the ULB so far as

it appears from his examination of those books;

4.1.3 whether the ULB’s Balance Sheet, Income and Expenditure

Statement, Receipts and Payments statement and Cash Flow

statement dealt with by the report are in agreement with the books of

accounts;

4.1.4 Whether appropriate internal controls have been adhered to;

4.1.5 Whether all the payments have been made in accordance with the law;

4.1.6 Whether any deficiency or loss appears to have been caused by the

gross negligence or misconduct or any person (if yes, the amount of

loss should be quantified);

4.1.7 whether any sum receive for and on behalf of the ULB which ought to

have been brought into account of the ULB by any person has been

so brought; and

4.1.8 Whether any material impropriety or irregularity, other than those

mentioned above, has been observed by him during the course of

audit of accounts.

Where any of the matters referred above are answered adversely or with a

qualification, the auditor’s report shall state the reason for the same and with

further explanation and inclusion of statistical impact if possible.

4.2 ANNEXURE TO THE AUDITOR REPORT OF THE MUNICIPAL:

Besides the above Audit Report, the Auditor shall comment in respect of the

following matters in the Annexure to the Audit Report:

4.2.1 Whether all the expenditure incurred by the ULB are authorised by

appropriate provision in the sanctioned budget, whether made

originally or subsequently?

4.2.2 Whether all sums due to and received by the ULB have been brought

to account within the prescribed time limits?

4.2.3 Whether all transactions (incomes, expenditures, assets and liabilities)


are correctly classified?

4.2.4 Whether in respect of all bills for charges on account of all works and

other expenditure, proper certificates have been furnished in support

of them and that no deviation has been made from the sanctioned

plans and the estimates without the sanction of the competent

authority?

4.2.5 Whether the amounts received as specific grants have been utilised

for the purposes as stated in the grant sanction order?

4.2.6 Whether the Special Funds have been created as per the provision of

relevant statues and whether the Special Funds have been utilised for

the purposes for which created?

4.2.7 Whether the ULB is maintaining proper records showing full

particulars, including quantitative details and situation of fixed assets;

whether these fixed assets have been physically verified by the

management at reasonable intervals; whether any material

discrepancies were noticed on such verification and if so, whether the

same have been properly dealt with in the books of account?

4.2.8 Whether physical verification has been conducted by the ULB at

reasonable intervals in respect of stores?

4.2.9 Whether the procedures of physical verification of stores followed by the ULB are reasonable and adequate? If not, the inadequacies in such procedures should be reported;

4.2.10 Whether any material discrepancies have been noticed on physical verification of stores as compared to books records, and if so, whether the same have been properly dealt with in the books of account?

4.2.11 Whether the valuation of stores is in accordance with the accounting

principles laid down in the Accounts Manual? Whether the basis of

valuation of stores is same as in the preceding year? If there is any

deviation in the basis of valuation, the effect of such deviation, if

material, should be reported;

4.2.12 Whether the parties to whom the loans, or advances in the nature of

loans, have been given by the ULB are repaying the principal amounts

as stipulated and are also regular in payment of the interest and if not,

whether reasonable steps have been taken by the ULB for recovery of

the principal and interest

4.2.13 Whether there exists an adequate internal control procedure for the

purchase of stores, including components plant and machinery,

equipment and other assets?

4.2.14 Whether proper procedures are in place to identify any unserviceable

or damaged stores and whether provision for the loss in this respect,


if any, has been made in the accounts?

4.2.15 Whether the ULB is regular in depositing Provident Fund dues and

Profession Tax deducted with the appropriate authorities and if not,

the extent of arrears;

4.2.16 Whether the ULB is regular in depositing tax deducted as source

(income tax, GST, TDS Etc) and other statutory dues, and if not, the

nature and cause of such delay and the amount not deposited;

4.2.17 Whether any personal expenses have been charged to revenue

account; if so, the details thereof.

4.2.18 The Report of the Auditor shall also specifically report on any other

matter which the Government, ULB and/or the Authority (as required

by the relevant Act), may have specifically required to be covered as

a part of the Audit.

4.3 PERIODICAL AUDIT REPORT / CERTIFICATE

At the end of each period, an Auditor may furnish a certificate on the quarterly coverage to the Municipal Commissioner/ Executive Officer. The suggested format of the certificate can be as follows:

“Certificate that the accounts from ----------------to--------------------- have been audited by me and found correct with the exception of the following items:” (The exceptions shall be explained in details).

While furnishing periodical certificate/report, the Auditor shall at least verify the

following:

4.3.1 Whether the postings for the entries in the books of original entry have

been correctly made in the respective ledger accounts:

4.3.2 Whether all the books of accounts and supplementary registers that

are prescribed in the Accounts Manual / other applicable regulations

have been properly maintained by the ULB;

4.3.3 Whether the Quarterly Financial Statements have been compiled on

the basis of the actual entries in the books of accounts;

4.3.4 Whether the period-end and reconciliation procedures prescribed

have been carried out.

4.3.5 Whether the Bank Reconciliation statements have been prepared and

are appropriate.

4.3.6 Whether all grants from Government have been accounted at gross

value with proper entries to various accounts.


5. DELIVERABLES / OUTPUT

Deliverables / Output (ULB wise)

Time line from the

date of work

order/agreement

1. Audited financial statement of the ULB for the Financial

Year 2019-20.

2. Scheme specific Audit mostly all Centrally sponsored

schemes i.e. 14th Finance Commission grants/15th Finance

Commission Grants, PMAY (U), National Urban

Livelihoods Mission (DAY-NULM), Atal Mission for

Rejuvenation and Urban Transformation (AMRUT),

Swachh Bharat Mission(SWM), Namami Gange.

3.Audit Report based on the Scope of the work including

verification and listing of fixed assets of the ULBs.

4. Updated Fixed Assets/Movable Assets Register as on

end of the financial year.

5. Project wise / scheme wise separate audited statement

of accounts for the concerned Financial Year as well as

submission of the Consolidated Audit Report of the ULBs

which need to be uploaded on website.

2 MONTHS

*For next two years, the above mentioned schedule will be followed

Note: i. The activities/assignment mentioned in above clause 3 table will have to be

carried out parallel within the given time period.

ii. All reports must be submitted in both print and electronic version to the

concerned ULBs, Directorate and Urban Development Department. All

equipment required for satisfactory services for this project shall be obtained

by the C.A. Firm at their own cost and shall be their property.

iii. The C.A Firm is required to submit the following reports:

o Bank Reconciliation Statements for all the bank accounts.

o Trial Balance.

o Income and Expenditure account.

o Receipts and Payment Statement.

o Balance Sheet.

o Relevant Schedules & Annexure as per Jharkhand Municipal Accounts Manual.

o Project wise / scheme wise separate audited statement of accounts year wise.

iv. The C.A. Firm may shall submit a Report highlighting an issue that could become critical for the timely completion of the work and that requires urgent attention of the Directorate, State Urban Development Agency (SUDA) and ULB.


v. Regular communication with Directorate, State Urban Development Agency

(SUDA) is required in addition to all key communications. This may take the

form of telephone/ teleconferencing, e-mails, faxes, and occasional Meetings.

vi. The Auditor must submit the Consolidated Audit report of ULBs as well as

Individual reports in each and every parameter of the ULBs and Scheme

wise/project wise report of ULBs.

6. DELAYS IN THE PERFORMANCE

6.1 Timely submission of the report as per the provision mentioned in the

agreement.

6.2 In case of delay in the implementation of the project and/or any delay in

performance during the contract period, the C.A. Firm shall be liable to any or

all of the following actions:

(i) Imposition of Liquidated Damages.

(ii) Forfeiture of performance guarantee.

(iii) Termination of the Contract for default.

6.3 If at any time with respect to commencement of the project as required during

performance of contract the C.A. Firm may face difficulties impeding timely

completion of the project under the contract and/or performance of services,

the C.A. Firm shall promptly inform the department in writing of the fact of the

delay within 24 hours and its causes and likely duration.

6.4 As soon as practicable, after receipt of the C.A. Firm notice, the department

shall assess the situation and may at its discretion extend the time for

commencement and/or performance with or without Liquidated Damages.

7. LIQUIDATED DAMAGES

7.1 In the event of failure of the implementation of the project by the C.A. Firm as

per the provision mentioned in the agreement, the Department reserves the

option to recover liquidated damages, and not by way of penalty, for late

implementation from the C.A. Firm in the following manner:-

S.No. Details of delay Liquidated Damage to

be charged

(i) For delay upto 25% of the implementation period 2.5% of the Proposal price

(ii) For delay of more than 25% and upto 50% of the

implementation period 5% of the Proposal price

(iii) For delay of more than 50% and upto 75% of the

implementation period.

7.5% of the Proposal price

(iv) For the delay more than 75% of the implementation

period

10% of the Proposal price

(maximum)


7.2 The aforesaid chargeable liquidated damages, if not paid by the C.A. Firm,

would be recoverable under the relevant provisions of Public Damage

Recovery Act’ 1914 by the Department/ULB.

8. ACKNOWLEDGEMENTS BY APPLICANT FIRM

8.1 It shall be deemed that by submitting the Proposal, the Applicant Firm has

made a complete and careful examination of the RFP;

8.2 Received all relevant information requested from the Department;

8.3 Acknowledged and accepted the risk of inadequacy, error or mistake in the

information provided in the RFP or furnished by or on behalf of Department;

8.4 Satisfied itself about all matters, local conditions, things and information, etc.

necessary and required for submitting an informed Application and

performance of all of its obligations there under;

8.5 Agreed to be bound by the undertaking provided by it under and in terms

hereof.

8.6 Department shall not be liable for any omission, mistake or error on the part of

the Applicant Firm in respect of any of the above or on account of any matter

or thing arising out of or concerning or relating to RFP or the Selection

8.7 Process, including any error or mistake therein or in any information or data

given by Department.

9. NO CLAIM ARRANGEMENTS

9.1 The C.A. Firm shall not be entitled to make any claim, whatsoever, against the

department, under by virtue of or arising out of this contract, nor shall the

department entertain or consider any such claim, if made by the C.A. Firm and

Firm shall have to sign a "no claim" certificate in favour of the department in

such forms as shall be required by the department after the expiry of the

agreement.

10. QUALITY STANDARDS

10.1 Standards: The C.A. Firm under this agreement shall conform to the

accounting standards shall be maintained.

10.2 Standard of Performance: The C.A. Firm shall carry out the services and

carry out its obligations under the agreement with due diligence, efficiency and

economy in accordance with generally accepted norms.

11. CORRUPT PRACTICES

11.1 Department is a public service department and requires to serve honestly,

diligently and timely. The C.A. Firm would be the assisting agency of the

Department; therefore, he is also required to maintain highest standards of

honesty and ethics.


11.2 The C.A. Firm is advised to refrain from the corrupt and fraudulent practices

during the execution of the contract. Corrupt and fraudulent practices are

defined as follows:-

11.3 “Corrupt Practice” means behavior of C.A. Firm including his personnel by

which they improperly and unlawfully enrich themselves and/or those close to

them, or Induce others to do so, by misusing the position in which they are

placed, and it includes the Proposing, giving, receiving, or soliciting of anything

of value.

11.4 “Fraudulent Practice” means a misrepresentation of facts in order to influence,

and collusive practices of the C.A. Firm.

12. DETAILS TO BE KEPT CONFIDENTIAL

12.1 The C.A. Firm shall treat the details of the agreement as private and

confidential, save in so far as may be necessary for the purposes thereof, and

shall not publish or disclose the same or any particulars thereof in any trade or

technical paper or elsewhere without the prior consent in writing of the

department.

If any dispute arises as to the necessity of any publication or disclosure for the

purpose of the agreement the same shall

Government of Jharkhand...51 Urban Local Bodies (ULBs), Jharkhand. Request for Proposal...

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